Questions from Macroeconomics


Q: Distinguish between physical capital and financial capital and give two examples of

Distinguish between physical capital and financial capital and give two examples of each.

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Q: Explain the connection between the price of a financial asset and its

Explain the connection between the price of a financial asset and its interest rate.

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Q: How do firms make investment decisions?

How do firms make investment decisions?

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Q: What determines the demand for loanable funds and what makes it change

What determines the demand for loanable funds and what makes it change?

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Q: How do households make saving decisions?

How do households make saving decisions?

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Q: Define frictional unemployment, structural unemployment, and cyclical unemployment. Give

Define frictional unemployment, structural unemployment, and cyclical unemployment. Give examples of each type of unemployment.

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Q: What determines the supply of loanable funds and what makes it change

What determines the supply of loanable funds and what makes it change?

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Q: How do changes in the demand for and supply of loanable funds

How do changes in the demand for and supply of loanable funds change the real interest rate and quantity of loanable funds?

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Q: What is the Ricardo-Barro effect and how does it modify

What is the Ricardo-Barro effect and how does it modify the crowding-out effect?

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Q: Lori is a student who teaches golf on Saturdays. In a

Lori is a student who teaches golf on Saturdays. In a year, she earns $20,000 after paying her taxes. At the beginning of 2014, Lori owned $1,000 worth of books, DVDs, and golf clubs and she had $5,00...

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